- St. George was ranked Utah's most small business-friendly city, per B2B Review.
- Factors include population growth, low sales tax rate, and commercial real estate rent.
- Washington County's 11.15% sales tax aids business growth, according to a local business owner.
ST. GEORGE — The Beehive State has long boasted a business-friendly environment, making it a prime location for entrepreneurs to start their ventures.
While Silicon Slopes gets most of the headlines, the state is also home to a thriving small business ecosystem. But what city takes the crown and stands out the most when it comes to running a small business?
A new study from B2B Review considered the overall population, recent population growth, proportion of employer firms, county-level sales tax rates, and average commercial real estate rent to rate 47 Utah cities.
It concluded that Utah's most small business-friendly city is St. George.
"St. George is a phenomenal place to start and run a business. It's fantastic. It's a great place. The city itself is very open. I've dealt with the city on infrastructure, I've dealt with them from a power perspective, on growth, you know, on so many different facets, but they're just so easy to deal with," said Matt Hamlin, one of four owners at Great Harvest Bread Company. "They're very open and they're very growth oriented."
Of course, St. George's standing as one of Utah's most populous cities is a definite positive for small businesses and the city has seen a 9% population increase from 2020 to 2023.
With that growth, Hamlin said, comes more demand. And even with other bakeries popping up, Great Harvest still enjoys a strong customer base.
But one of the biggest factors in St. George's ranking is Washington County's sales tax rate of 11.15% — the best in Utah.
This allows businesses to reduce overhead operating costs and, in turn, increase margins.
"It's very business advantageous," Hamlin said of the sales tax rate. "We don't have to pay Uncle Sam, you know, every two seconds, which is super helpful for us. It keeps more money in our pocket to continue to grow the business and keep our employees working. It's great."
While the average commercial real estate rent per square foot was higher in St. George than some of the other cities in the top 10, ($55), its mix of economic stability, business presence and the favorable tax environment still landed it in the top spot.
Two other Washington County cities made the top 10, with Cedar City and Hurricane joining St. George.
Across the entire state, the top 10 best cities for small businesses included:
- St. George
- Layton
- Logan
- Cedar City
- South Jordan
- Salt Lake City
- Hurricane
- Millcreek
- Ogden
- West Valley City
The larger rankings speak to Utah's position as a small business-friendly state, overall, something Hamlin himself recognized.
"Utah as a whole has just been so phenomenal to work with. I've had multiple friends of mine move their business to Utah, just because it's easier to do business here," Hamlin said.
